JPMorgan Offers Faster Domestic Payments Via Visa Direct

J.P. Morgan and Visa have teamed to offer faster domestic payments via Visa Direct.

The collaboration, announced Monday (May 6) is designed to improve merchant experiences and empower cardholders for customers of J.P. Morgan Payments.

“With Visa Direct’s extensive reach in the U.S., J.P. Morgan Payments will empower merchants, businesses and FinTechs to embed faster domestic payments into their solutions,” the companies said in a news release provided to PYMNTS.

This includes its Push to Card payment rail, which allows for the fast and secure movement of funds directly to recipients’ bank accounts and digital accounts by leveraging the debit card credential.

“This is an important collaboration for our clients and our business. Visa Direct’s capabilities align strategically with our commitment to delivering innovative solutions to our clients,” said John Skinner, co-head of treasury services at J.P. Morgan Payments.

“By boosting our ability to deliver faster payments, we’re streamlining payment processes, enhancing liquidity management, and providing greater convenience for our customers.”

The partnership comes days after J.P. Morgan announced a new program for its small business clients, letting companies opt for real-time payments on a pay-as-one-goes continuum. Chase is a participant in both real-time payment rails operating today: the RTP® network, via The Clearing House, and the FedNow® Service.

Writing about the partnership last week, PYMNTS noted that in “B2B interactions, faster payments — especially ad hoc payments — may prove to be a competitive advantage.”

Research by PYMNTS Intelligence has shown that nonrecurring payments account for roughly a quarter of total accounts payable volume, with a third of companies surveyed saying that improved customer/client satisfaction would be part of improved ad hoc payments.

In addition, 60% of companies sending tips and payments to employees and gig workers will pay a fee to use instant payments, according to research from “Streamlining Ad Hoc Payments With Instant Pay,” a collaboration with Ingo Payments.

“The greenfield opportunity for instant payments to be part of a business’s payment options — depending on the use case — looms large,” PYMNTS wrote. “As many as 30% of these types of payments are made to individuals, and roughly a quarter are made to other businesses.”